In 2006, the Bank of Japan adopted a policy framework focusing on

A) expected inflation one to two years in the future.
B) current inflation.
C) maintaining a fixed exchange rate.
D) the growth in the money supply.


A

Economics

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A result of an exchange rate depreciation, would occur as the spending patterns change in response to a change in the exchange rate.

a. expenditure switching from domestic to foreign products b. expenditure switching from foreign to domestic products c. expenditure switching from rural to urban producers d. terms-of-trade deterioration

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Manager-determined prices are

A. not determined by the forces of demand and supply. B. exogenous variables in a demand equations. C. associated with price-taking firms. D. both a and b E. both b and c

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An economy in which output has decreased and prices have decreased would suggest a:

A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.

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